Senate set to vote on debit card swipe fee limits tomorrow at 2PM

[flpoljunkie]

Swipe Fee Vote Wednesday: Senate Tests Limits Of Wall Street Power

WASHINGTON -- The debit card battle that has engulfed lobbyists and lawmakers in the nation's capital all year will come to a head on Wednesday, with a vote set for 2 p.m.

At stake are roughly $16 billion a year in "swipe fees" that merchants pay to banks for the privilege of allowing their customers to shop with plastic. New federal rules aiming to rein in those fees are slated to take effect on July 21, and as the clock ticks down to a final vote, an already bizarre Washington lobbying scramble is getting weirder and wilder.

Sen. Jon Tester (D-Mont.) has been maneuvering all year to woo the 60 votes he needs for a bill that would delay the new rules. And as of Tuesday, he may finally have done so. But he might still lose -- and not because he doesn't have the votes in the GOP-run House. It's because Tester's amendment is tethered to a bill that is itself unlikely to become law. Congress, in other words, is so broken it can't even pass bank-friendly legislation.

Thus far, it's been an epic lobbying battle pitting Wall Street against Walmart, one so heated that Washington insiders jokingly refer to it as "The K Street Full Employment Act."

more...

http://www.huffingtonpost.com/2011/06/07/swipe-fee-vote-wednesday_n_872835.html

[customerserviceguy]

1. If swipe fees are lowered

the banksters have got themselves covered with what limitations they plan to impose on transactions. Expect to either pay with cash, check (if the business will accept it) or credit card if the banksters lose.

[a kennedy]

3. but who's in on it..... Tester and Durbin.... UGH.

Tester is the main pusher of this:

Sen. Jon Tester (D-Mont.) has been maneuvering all year to woo the 60 votes he needs for a bill that would delay the new rules. And as of Tuesday, he may finally have done so. But he might still lose -- and not because he doesn't have the votes in the GOP-run House. It's because Tester's amendment is tethered to a bill that is itself unlikely to become law. Congress, in other words, is so broken it can't even pass bank-

Thus far, it's been an epic lobbying battle pitting Wall Street against Walmart, one so heated that Washington insiders jokingly refer to it as "The K Street Full Employment Act."

The melee features a proxy leadership fight in the Democratic Party that depends heavily on Republican votes. It has major implications for the future of campaign financing for both parties. And it has quietly overwhelmed the schedules of Washington's elite for months, even as the news media jumps from the Donald Trump birther circus to Sarah Palin's bus tour.

Senate Majority Whip Dick Durbin (D-Ill.), who has been the upper chamber's lead champion for retailers and is pushing for the fee overhaul, has congressional dysfunction as an ally.

On Tuesday, HuffPost asked Durbin about Tester's decision to attach his amendment to a legislative vehicle that is running on empty. Durbin responded with a wide, wry smile, relishing the timeworn congressional jiujitsu that pinned Tester without the Montana senator even realizing it. "Well," Durbin said, "we haven't had a lot of luck passing bills in both chambers.

"http://www.huffingtonpost.com/2011/06/07/swipe-fee-vote-wednesday_n_872835.html

[flpoljunkie]

5. This is Durbin's amendment. He does not want to see credit card fee limits delayed.

[flpoljunkie]

6. The banksters will still be making money, just not so damn much--$1.35 billion a month. Even Chuck

Todd described thi to NBC's Kelly O'Donnell as saving consumers money. Banks are overcharging retailers now, and they pass this cost along to consumers. Our banks charge much more than banks in Europe for processing debit cards, and I credit Dick Durbin for standing up to the big banks. Small banks with assets less than $10 billion are exempt. The people of Montana are not happy with Tester siding with the big banks, but he's raking in campaign contributions from them for his 2012 re-election campaign.

[customerserviceguy]

39. I don't believe that retailers are going to lower prices to make up for this

As far as I know, only the gasoline selling business gives a differential for a charge vs. cash transaction. I don't see that spreading anywhere else.

The banksters will more than make up for it in their checking account fees. The free checking account may become extinct again.

[Hippo_Tron]

40. That's what their propaganda says

However two things...

1) All but the largest 100 banks or so are actually exempt from the Durbin Amendment

2) The concept of "passing the cost on to consumers" as an absolute is only true in competitive markets with a very small profit margins. For example, if I own a small delivery business with profit margins that are just enough for me to live off of and the price of fuel goes up, I have to raise the price for deliveries or I will go out of business.

But if I'm JP Morgan/Chase or Bank of America and my profit margins are in the billions, there's nothing forcing me to make up for lost revenue from interchange fees. Therefore, my decision to determine whether or not to offer free checking or not offer it, is going to be completely independent of interchange fees. In fact, if I figured that I could make more money by charging people for checking, I would've done it already.

[a kennedy]

2. Was glad you posted this.....but, no one seems to care....

D*mn this is huge.

[flpoljunkie]

4. Yes, it is. The big banks make $1.35 billion a month from their big swipe fees

Dick Durbin will be on Morning Joe shortly and will likely be speaking about this vote.

[flpoljunkie]

7. The debate has started in the Senate. Bob Corker who supports Tester's bill is speaking.

[flpoljunkie]

9. Corker describes those who do not support the bill as those who want to 'punish the banks.'

[flpoljunkie]

8. Here's Tester's amended bill. It would delay debit card rate increases for one year.

Tester had 16 original cosponsor--nine of whom were Democrats. Both Nelsons were cosponsors. They are listed separately below.

S.AMDT.392
Amends: S.782
Amendments to this amendment: S.AMDT.393

Sponsor: Sen Tester, Jon (submitted 6/7/2011) (proposed 6/7/2011)

AMENDMENT PURPOSE:
To improve the regulatory structure for electronic debit card transactions, and for other purposes.

TEXT OF AMENDMENT AS SUBMITTED: CR S3558-3559

STATUS:

6/7/2011:
Amendment SA 392 proposed by Senator Tester. (consideration: CR S3527-3528)

COSPONSORS(8):

Sen Corker, Bob - 6/7/2011
Sen Hagan, Kay - 6/7/2011
Sen Crapo, Mike - 6/7/2011
Sen Bennet, Michael F. - 6/7/2011
Sen Blunt, Roy - 6/7/2011
Sen Carper, Thomas R. - 6/7/2011
Sen Kyl, Jon - 6/7/2011
Sen Coons, Christopher A. - 6/7/2011

S.575
Latest Title: Debit Interchange Fee Study Act of 2011
Sponsor: Sen Tester, Jon (introduced 3/15/2011) Cosponsors (16)
Latest Major Action: 3/15/2011 Referred to Senate committee. Status: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

COSPONSORS(16), ALPHABETICAL : (Sort: by date)
Sen Akaka, Daniel K. - 3/17/2011
Sen Baucus, Max - 3/17/2011
Sen Blunt, Roy - 3/29/2011
Sen Carper, Thomas R. - 3/15/2011
Sen Coburn, Tom - 3/15/2011
Sen Coons, Christopher A. - 3/15/2011
Sen Corker, Bob - 3/15/2011
Sen Kyl, Jon - 3/15/2011
Sen Lee, Mike - 3/15/2011
Sen McCaskill, Claire - 3/16/2011
Sen Nelson, Bill - 3/29/2011
Sen Nelson, E. Benjamin - 3/15/2011
Sen Roberts, Pat - 3/15/2011
Sen Sessions, Jeff - 3/29/2011
Sen Thune, John - 3/15/2011
Sen Toomey, Pat - 3/15/2011

[flpoljunkie]

10. NC's Kay Hagan, cosponsor, speaking now. Bank of America headquartered in Charlotte, N.C.

This bill gives the regulators the power to decide what the fees will be, and you know what the Republicans say about the bank regulators--they are there to serve the banks.

Corker said he doesn't know if they have the 60 votes required to pass Tester's amended bill. We will soon see.

[woo me with science]

11. It's like plugging one hole in a sieve. nt

[flpoljunkie]

12. Banks make $1.35 billion a month on credit card swipe fees. They need to be better regulated.

That's why we need Elizabeth Warren--to protect us from predatory lenders.

[flpoljunkie]

13. Durbin points out that small banks are exempted from the debit card fee legislation. Calls Tester's

bill a baby TARP for the big banks.

Chase, Bank of America, and Wells Fargo stand to lose $8 billion dollars a year from consumers. He pointed out that their lobbyists are out in force today in the halls of the Senate.

He asks, 'Where is the sympathy for small business on this floor?' He further says this legislation will easily justify banks charging the 44 cents per transaction they charge today and more! Dodd Frank requires a limit of 12 cents per swipe fee for the big banks.

[flpoljunkie]

14. The Hill: Swipe-fee opponents shower Sen. Tester with campaign contributions

Swipe-fee opponents shower Sen. Tester with campaign contributions
By Alexander Bolton - 04/20/11

Sen. Jon Tester (D-Mont.) has reaped a windfall in contributions from banks and lobbyists since introducing legislation to delay new regulations on debit-card swipe fees.

Tester collected nearly $60,000 in contributions from credit card companies and other opponents of the proposed caps on swipe fees in the 17 days following the introduction of his bill, public fundraising records show.

The surge in contributions helped Tester, a member of the Senate Banking Committee and one of the chamber’s most vulnerable incumbents, raise more than $1.1 million in the first three months of 2011. He has almost $1.5 million in his campaign war chest.

http://thehill.com/business-a-lobbying/156911-swipe-fee-opponents-direct-campaign-money-to-tester

[flpoljunkie]

15. Shameless huckstering by Dems for the big banks. Carper's up now.

Durbin pointed out to Tester that small banks are exempted. Tester tried to make the case it would hurt them anyway--which just isn't true. Of course, they all know that.

Laughable! Carper says he's 'not here to carry water for the banks.' If Barney Frank supports Tester's amendment, he's wrong. Sadly, Frank's taken a lot of money from big banks, as well.

[flpoljunkie]

16. Durbin speaking points out we have the interchange bank fees in the world who charge less than 1/5

what banks charge in the United States. There is, he further points out, no interchange fee in Canada.

Way to go, Durbin! He's from the Democratic wing of the Democratic party.

He says this legislation is a huge loophole in the Dodd Frank swipe fee limit regulation.

[flpoljunkie]

17. Can the Senate stand up for consumers against big banks? How many Dems will sell out to big banks?

That is the question.

Not on Democrat spoke against Tester's amendment--other than Dick Durbin. Disgraceful. Durbin said he felt sorry for his fellow Senators--who had been bombarded by lobbyists on both sides.

Tester, it's not about the small banks.

[flpoljunkie]

18. Closing. Durbin says small town American is begging us to vote no on the Tester amendment

Vote at 2PM. It will be close.

[flpoljunkie]

19. Interesting. McConnell started speaking and the presiding Senator interrupted him and said we're

in a quorum call. Then Corker tried to interrupt and the was told the same.

Not sure what's going on.

Now McConnell wants to set aside the pending vote to introduce an amendment.

Reid interrupts and says aren't we going to vote now on the Tester amendment.

Now the roll is being called.

Very interesting, indeed.

Reportedly, Harry Reid does not support the Tester amendment.

[flpoljunkie]

20. Sixty votes are required for this vote. The swipe fee rules are set to go into effect next month--

and the banks wants that stopped in its tracks. Their lobbyists apparently wrote the Tester bill.

[flpoljunkie]

21. Votes coming fast and furious. Can't keep track. It seems very close.

[flpoljunkie]

22. Do the banks 'own the place,' as Dick Durbin once said? Not today! Fails 54-45.

Will post the roll call vote when it becomes available. We will see which Dems stand with the banks and not with consumers.

[vroomvroom]

26. I'm confused..isnt this just about Merchants vs Banks -- not about Consumers?

Its about merchants thinking they are paying too much to banks for swipe fees so this has nothing to do with consumers which is why the vote could have gone either way...both sides to this (merchant vs bank) had lobbyists buying their votes....if it were genuinely about banks vs consumer the banks would have one...as usual.

So i think you are mistaken to include consumers in this. The banks stil own the place if it involves stealing the tax-payer money.

[Mass]

28. Merchants pass the fee to consumers in their prices.

[flpoljunkie]

30. Yes, and what banks charge in this country is outrageous. It's big profits for big banks.

[boppers]

38. Merchants charge consumers.

At my corner market, there's a $.50 fee for swipe transactions, because that's about what it costs them.

[vroomvroom]

23. Why doesn the 40-vote Fillibuster apply this time -- Why is it only for Public Issues e.g. Health?

[Mass]

24. It did apply. This is why the bill lost.

[vroomvroom]

27. Thanks for the clarification

[Mass]

25. Thanks for your post.

[flpoljunkie]

29. Thank you, Mass.

[ProSense]

31. U.S. Senate Rejects Delay of Fed’s Debit-Card Swipe Fee Caps in 54-45 Vote

Bloomberg: U.S. Senate Rejects Delay of Fed’s Debit-Card Swipe Fee Caps in 54-45 Vote

The U.S. Senate rejected a six-month delay of a Federal Reserve rule capping debit-card swipe fees set by Visa Inc. (V) and MasterCard Inc. (MA)

Senator Richard Durbin of Illinois, the No. 2 Democrat in the chamber, led the opposition to the delay amendment, which was defeated in a 54-45 vote. The measure needed 60 votes for approval.

The central bank now has until July 21 to implement the final rule on capping the fees, which accounted for more than $16 billion in 2009, according to the Fed.

In December, the Fed proposed capping the swipe fees, or interchange, at 12 cents a transaction, replacing a formula that averages 1.14 percent of the purchase price.

Great news!

[flpoljunkie]

32. The Senate roll call vote has now been posted.

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=112&session=1&vote=00086

Question: On the Amendment (Tester Amdt. No. 392 )
Vote Number: 86 Vote Date: June 8, 2011, 02:04 PM
Required For Majority: 3/5 Vote Result: Amendment Rejected
Amendment Number: S.Amdt. 392 to S. 782 (Economic Development Revitalization Act of 2011)
Statement of Purpose: To improve the regulatory structure for electronic debit card transactions, and for other purposes.
Vote Counts: YEAs 54
NAYs 45
Not Voting 1


YEAs ---54

Akaka (D-HI)
Alexander (R-TN)
Ayotte (R-NH)
Baucus (D-MT)
Begich (D-AK)
Bennet (D-CO)
Blunt (R-MO)
Boozman (R-AR)
Carper (D-DE)
Coats (R-IN)
Coburn (R-OK)
Cochran (R-MS)
Coons (D-DE)
Corker (R-TN)
Cornyn (R-TX)
Crapo (R-ID)
DeMint (R-SC)
Gillibrand (D-NY)
Hagan (D-NC)
Hatch (R-UT)
Heller (R-NV)
Hoeven (R-ND)
Hutchison (R-TX)
Inhofe (R-OK)
Johanns (R-NE)
Johnson (D-SD)
Johnson (R-WI)
Kirk (R-IL)
Kyl (R-AZ)
Lee (R-UT)
Manchin (D-WV)
McCain (R-AZ)
McCaskill (D-MO)
McConnell (R-KY)
Mikulski (D-MD)
Moran (R-KS)
Murkowski (R-AK)
Nelson (D-FL)
Nelson (D-NE)
Paul (R-KY)
Portman (R-OH)
Risch (R-ID)
Roberts (R-KS)
Rubio (R-FL)
Schumer (D-NY)
Sessions (R-AL)
Shelby (R-AL)
Stabenow (D-MI)
Tester (D-MT)
Thune (R-SD)
Toomey (R-PA)
Warner (D-VA)
Webb (D-VA)
Wicker (R-MS)

[DrToast]

34. Interesting roll call

I can't remember a vote that was that non-partisan.

[Raine1967]

33. Hoorah! Thank you flpol for the updates on this! eom

[flpoljunkie]

35. Yer welcome!

[karynnj]

36. According to some, this was also a "leadership" fight between Durbin and Schumer

Looking just at the Democrats on this vote, it is good to see there are more Democratic wing of the Democratic party Democrats than there were Democrats willing to give the big banks everything they want. (I understand Schumer, Gilibrand, Coons and Carper's difficulty, but this is really bad amendment. )

[flpoljunkie]

37. Really, more a sad case of Schumer, Gillibrand and the others who represent big banking states

And, we must not forget what Dick Durbin said, 'Frankly, banks own the place.' No truer works ever spoken.

Hats off to the Democrats who stood up against the big banks and for the consumer and small businesses who are hurt the most by these exorbitant debit swipe fees.